FUEL SUBSIDY REMOVAL AND RURAL LIVELIHOODS: AWARENESS, EFFECTS, AND COPING STRATEGIES OF FARMING HOUSEHOLDS IN ENUGU STATE, NIGERIA

Abstract

The study investigated the coping strategies of farming households in Enugu State, Nigeria in a post fuel subsidy era. The specific research questions of the study were to describe the socio-economic characteristics of the respondents, ascertain farming households’ awareness of fuel subsidy removal, evaluate the effect of subsidy removal on the livelihoods of the farming households, and identify the coping strategies employed by farming households in the study over fuel subsidy removal. One hundred and twenty farming households were randomly selected from a population of 3,267,837 persons. Data for the study were collected using a questionnaire. The collected data were analysed using descriptive statistics such as percentage, mean and standard deviation. The result obtained showed that there were more male headed households in the study area with average age of 49.7 years and a mean household size of five persons. Most (95.8%) of the respondent reported being aware of the fuel subsidy removal. The effects of fuel subsidy removal on the livelihoods of the farming households in the study area among others include increase in the cost of living (^x=3.73, SD=0.57), increase in the cost of production (x=3.69, SD=0.69), increase in the price of farm produce (x=3.69, SD= 0.50), and increase in the cost of transportation (x=3.63, SD= 0.57). Coping strategies adopted by the respondents include reducing leisure and spending habits (x=3.42, SD=0.88), engaging in multiple jobs (x=3.35, SD= 0.96), reducing farm size and farm operations (x=3.23, SD= 0.80), collaborating in collective purchases and transportation (x=3.33, SD= 0.86) and switching to cheaper energy sources (x=3.03, SD= 0.88). It was recommended among others that targeted support programmes and policies such as youth and women empowerment be made to help households adjust to the increased fuel prices, formation and membership of cooperative societies should be encouraged and farming households should be enlightened about alternative energy sources.